Bitcoin Recovers After People’s Bank of China Reaffirms Crypto Ban

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Beijing-based enforcement office of the People’s Bank of China orders software company shutdown, reaffirms ban on companies supporting crypto industry Most Chinese exchanges fly flags of convenience and are registered at the foreigner

The price of bitcoin fell, then recovered, after an enforcement division of the People’s Bank of China shut down a Beijing-based software company that develops crypto trading software and publicly reaffirmed the nationwide ban on the crypto.

During Tuesday’s Asian trading session, the Beijing Financial Supervision and Administration of the Business Administration Department of the People’s Bank of China (PBoC) released a statement saying it has shut down Beijing Qudao Cultural Development Limited, a relatively unknown software company, for providing software services. to crypto trading companies. The bank also warned of the risks of trading digital assets and reiterated that it is illegal in China.

The Central Bank of China: We canceled a Beijing company that provides software services for virtual currency transactions and closed its website, no institution can provide services for virtual currency transactions. https://t.co/R6I56xgtqT

– Wu Blockchain (@WuBlockchain) July 6, 2021

While bitcoin has been banned in China for some time now, a number of internet technology and commerce groups issued a statement in May reaffirming their support for the ban and stating that the ban included relatively new areas in the ban. industry like DeFi.

This ban was recently extended to the provincial level to include the means of producing bitcoin, mining, under the auspices of environmental protection.

The price of Bitcoin has proven to be extremely sensitive to crypto-related news from China, regardless of the veracity of the content. At the end of May, a confluence of news of questionable accuracy involving Elon Musk, taxes, China and the environment pushed the price of bitcoin down to $ 35,000. Then, in June, prices fell below $ 30,000 following news that various Chinese provinces were starting to ban mining.

However, although the history of mining caused prices to drop in the short term, many in the industry said at the time that it was a clear positive for the industry. , citing concerns about centralization in China.

Many investors outside of China have long been concerned about the control China may have over Bitcoin, in terms of mining, use and ulterior motives for undermining the US dollar, David said. D. Tawil, then president of Pro Chain Capital at Blockworks. All of these problems seem to have quickly dissipated, which may allow for richer involvement in bitcoin by the rest of the world.

The price of bitcoin is currently trading just above $ 34,100, up about 1% in the past 24 hours according to CoinGecko.

Sam reynolds

Blockworks

Journalist

Sam Reynolds is a Taipei-based journalist who covers digital assets and regulation across Asia. Prior to joining Blockworks, he was an editor at Forkast News and an analyst at IDC.

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